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How much revenue will a foreign producer

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1. If the government places a $3 tariff on all foreign produced widgets, the total domestic production will be.

2. The total number of imported widgets with a $3 tariff will be.

3. How much revenue will a foreign producer make if there is no tariff or quota?

4. The value of consumer surplus with free world trade would be and the value of consumer surplus in a closed economy would be.

5. The value of producer surplus with free world trade would be , and the value of producer surplus in a closed economy would be.

6. With a $3 tariff the government would make in tax revenue.

7. In a closed economy the equilibrium price would be and the equilibrium quantity would be.

8. A tariff will increase the income of which producers?

9. If a tariff was removed we would expect what to happen to the equilibrium price?

10. A tariff is meant to reduce the amount of competition for which group?

11. Will domestic production be greater in a closed or open economy?

12. Will equilibrium price be smaller in a closed or open economy?

13. What are some of the advantages of free trade?

14. What are some of the disadvantages of free trade?

Reference no: EM132199690

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